The bank further indicated that Fiji’s growth for the past year was 3.6 per cent which was what the Reserve Bank of Fiji had released earlier.
This is highlighted in ADB’s Asian Development Outlook 2014 released Wednesday.
The 2014 forecast growth figure was based on that record investment growth levels off and the stimulatory effects of the one-off tax cuts and higher tax thresholds in 2013 dissipate.
“The economic outlook continues to improve on previous projections, though, and early growth indicators are positive for 2014,” the report said.
“In the near term, recently completed, ongoing, and planned projects including a couple of large hotel and resort developments, and the upgrading of Nadi International Airport, are expected to boost employment and economic activity.
“In the longer term, these projects are seen to benefit tourism and related sectors such as transport and wholesale and retail trade.”
For 2015, the ADB said growth was projected to accelerate with development partner financing in the post-election period, continued improvement in investor confidence, and rising private sector activity stemming from greater policy certainty.
The ADB however noted the current dependence on consumption driven growth was unsustainable in the medium term, however, and some rebalancing toward broader-based growth was essential.
Suva (Fiji Sun)